Expansion of Shambani Graduates Milk Processing Enterprise

SGE Ltd milk PRODUCTS are:
1. Pasteurised cultured milk (mtindi) in 500 and 250 mls packets; and 3 and 5 litres jelly cans
2. Pasteurised fresh milk in 500 mls packets and 3 and 5 litres jelly cans
3. Pasteurised flavoured milk in 200 mls packets

Fresh milk supplied by milk producers is checked for quality conformity, then subjected to special heat treatment (pasteurisation). Fresh milk products are packed while hot (plain) or after added with flavours and sugar (flavoured milk). Cultured milk products involve cooling the pasteurised milk to inoculating temperature before culture inoculation, packing and incubation.

Equipments for quality check include, lactometer, ph meter, fat testing machine. For pasteurisation are sow dust fuelled boiler, milk cans, handles and thermometers. Cooling and storage needs cold water chain (ice bank), freezers and cool boxes.

Five employees work at the plant in processing; they were trained at SUA on milk quality standards, processing, packing and hygiene.

SGE has established DEMAND CHAIN in Morogoro Municipality and Dar es Salaam city. Target customers are students in primary, secondary and academy schools; salaried employees in public and private firms and other milk consumers who eat in restaurants, shop in supermarkets, kiosks and stores near to their residence or office.

Students are many and desire edible products at affordable prices. Salaried employees have money but often fail to get milk at the time and place they desire. Most people take cultured milk with ugali a poplar food staple in Tanzania thus restaurants are important places to contact customers.

Raw material SUPPLY CHAIN is mainly fresh milk from Masai cattle keepers in Morogoro Rural and Mvomero Districts. Other materials include milk cultures, flavours and packaging materials. Fresh milk supply is high during rain season and low in dry season. Our company collects milk from two districts to widen accessibility during dry season.

Cultures, flavours and packaging materials are available throughout the year from Industrial packaging Ltd and Promaco Ltd both in Dar es Salaam.

REASONS TO BUY OUR PRODUCTS
- Distinguished taste of products
- Price difference due to distance advantage
- Home delivery of products

REACHING CUSTOMERS
- Supply in supermarkets, groceries and kiosks using motorbikes and bicycles
- Door to door sales
- Supply in shops within and near to schools and colleges

PROMOTIONAL TOOLS
- Stickers on retail outlets
- Football tournaments and debates and essay competitions in schools
- Street by street promotion through public address system

COMPETITORS
- Tanga Fresh ltd, ASAS Dairies, Tan Dairies, Azania milk, Moran milk and Mara milk.

COMPETING STRATEGIES
- Home delivery service of milk products
- Unique taste due to the processing procedure
- Use of the name shambani to establish confidence among customers

PRODUCT DIFFERENCE
- Fermentation process differs and method of handling culture gives shambani milk a distinguished taste
- Price per unit of our products is lower due to proximity to milk source and target market

1. Distinguished taste of milk products
2. Competitive price due to distance advantage to source of milk and market
3. Home delivery service not done by any other milk processor in Tanzania
4. The name “GRADUATES” creates a notion of intellect and professionalism that builds confidence to customers

I am the Managing Director, I hold BSc. agricultural economics and agribusiness from Sokoine University of Agriculture (SUA) in Morogoro and certificate of milk processing from the same university. I started managing the business from its start in 2003 when we had 2 employees and sold milk using bicycle with 1 outlet; now I manage 12 people and we have a motorbike, a pickup and sell to more than 150 retail outlets. I know our target markets very well since I was born in Dar es Salaam and took my secondary to university studies in Morogoro Region. My business career has success and challenges but no failures. Lack of investment capital was my biggest challenge. I have learnt that planning, knowledge of the industry one operates and teaming up with appropriate associates does make a difference.

SGE expansion will create 80 jobs in milk collection, processing and marketing.

SGE BRINGS INCOME GENERATION AND LIVELIHOOD IMPROVEMENT IN RURAL areas. Currently the company pays about US $ 100,000 per year for milk supply. This income is accrued to about 200 milk producers in rural areas of Morogoro Region. Money circulation allows women to operate their businesses such as village restaurants, kiosks and shops. Also, farmers acquire purchasing power to access better foods, education and health services.

SGE CONTRIBUTES IN IMPROVING HEALTH AND MENTAL CAPABILITIES OF STUDENTS, COMPLEMENT FOOD SECURITY, AND PROMOTE MILK CONSUMPTION. The company produces different milk products that increase value, shelf life, tastes and uses of milk which expose it to a diverse range of customers. In addition, home delivery increase accessibility for further milk consumption promotion.

SGE OPERATIONS CREATE BASIS FOR COMMERCIALISING MILK PRODUCTION IN TANZANIA. Farmers selling their milk to SGE Ltd are increasingly being aware of unfulfilled demand and income generation potential in milk production. This makes it easy to convince them to commercialise their cattle husbandry; thus reduce cattle migration, environment damage and conflicts between crop growers and livestock keepers.

The success of SGE is MOULDING A ROLE MODEL FOR GRADUATES IN ENTREPRENEURSHIP by proving that it’s possible and much more beneficial to create jobs and wealth in professional agricultural entrepreneurship.